15 Signs That Amazon Stores Are In Deep, Deep Trouble

When even one of the most powerful and better-established retailers in the whole world is scrambling to navigate through the storm that is hitting the retail sector right now, then you know for sure that something really scary is happening. Amazon, the largest online retailer and tech powerhouse in the globe, is coping with a series of challenges that range from billionaire losses, crashing stock value, mass store closings, layoffs, negative profits, and a chilling outlook for 2023 and beyond. At this moment, we are watching one of the biggest players in the market being absolutely crushed in the brick-and-mortar sector as high inflation and soaring interest rates affect businesses and consumers alike.
For example, Amazon is shuttering dozens of Whole Foods stores all over the U.S. as cash-strapped consumers turn to big-box and discount retailers to stretch their dollars as far as they possibly can. A source familiar with the matter told Insider that many more locations may soon be on the chopping block given that the organic grocery chain is struggling with declining profits for several quarters now. Even CEO Andy Jassy has admitted that Amazon is postponing new store openings and canceling plans for new locations until they figure out how to differentiate themselves from other established competitors in the market.
Since Amazon bought the organic supermarket chain in 2017, very little has been done to boost the growth of the business, says Lesley Hansell of Riverbend Consulting, a retail consultancy firm. Amazon is failing to adapt to the food sector's wafer-thin profit margins. And the company is losing the competition against other major grocery retailers who already have consumers in their pocket. Retail consultant Richard Hyman said that Amazon decided to enter a highly competitive industry without fully considering where it fits in this market, and it is going up against food retailers that have had decades to master a complicated trade. "Being big on its own is nowhere near enough to be good," he told Insider. "Amazon is not a retailer, it's a tech company, and their absolute core competence is in tech, where they should’ve stayed."
While Walmart, the largest grocer in the U.S., has over 25% of the grocery market share, according to Euromonitor, Kroger has just over 8%, and Albertsons has roughly 5%, Amazon commands just 1.2% of sales in the grocery market. If anything, Amazon seems lost when it comes to opening a viable grocery chain, says retail consultant Brittain Ladd, who formerly worked as a strategist for the company’s grocery business. “Unfortunately, Amazon right now does not have any strategy for physical grocery stores, just a bunch of ideas,” Ladd highlighted. “
This is the carnage we've been warned about, and the worst is yet to come! Many factors will continue to impact Amazon's brick-and-mortar business, especially if the company doesn't make the necessary changes to restructure its operations and understand consumer behavior in the physical retail environment. Many more doors could be shuttered for good in the months ahead, hundreds of thousands of jobs are on the line, and the potential of a financial and economic downturn just makes the situation increasingly threatening. The retail sector is facing the most drastic shift we have ever seen in our lifetime, and not even the biggest names in the industry will be able to escape from it! Today, we decided to compile several facts that reveal why Amazon's retail stores are being financially eviscerated and why they are doomed to fail.

[Rochelletrem]

The broad-based Standard & U.S. consumer confidence has sunk to record lows, thanks mainly to inflation. Retail spending, home-building, and manufacturing output all declined and those who drive the U.S. economy, are starting to cut back on discretionary purchases, such as appliances and services. Regardless of our market conditions, however, we should continue to promote savings and smart investments.

[thomasrudder]

People aren’t buying extra stuff right now. And the ones that can aren’t either. We’re about to head into something we have never seen before.

[Jediknight]

Bottom line. People are going broke. Necessities only.

[svenfritsch]

Amazon skyrocketed during Covid because nobody could leave their houses but now if you still compare prices like I do it’s actually cheaper to go to the store and buy the item yourself

[iamthatiam]

It is time to start building mom and pops store owners.

NO MORE BIG CORPORATION STORES

[thehonorablejiveturkeyspoo]

Now wait, how can a company that eviscerated so many businesses be in a pickle themselves

[truthtriumphant]

Plan...to close down all the mom and pop shops...small businesses...then close down the large businesses...so unless you have a home in the country ...growing your own food...and can survive like our grandparents did... we won't survive. All of those warehouses could easily become housing for those who resist what is coming.

[hockinghillsalive]

I work in an Amazon warehouse and in the last 3 months our hours have been cut drastically. It is not normal. Amazon is struggling like everyone else.

[donnabyers]

The public SHOULD NOT have to pay high price and have to do self - check out !! Any store that goes totally into that, I WON'T SHOP ANYMORE.

[karireyes]

Jeff Bezos himself claimed that Amazon would "probably fail someday ". I stopped shopping at Whole Foods when Amazon purchased it

[renegades]

As an 20 year old American. I'll tell you what we want. We want the mom an pop store's to come back.

We are sick of big corp that does nothing for the local economy.

[markstevenson]

If Amazon is struggling than you know there is something really bad happening with our economy.

[dennisyoung]

Maybe customer service and personal customer contact would draw people in. When we treated people like humans, instead of numbers, they had a personal relationship with store owners and employees. Now days it's all about money.

[JohnS-erjh]

good. Walmart and Amazon killed off a lot of great smaller chains and mom & pop stores. I saw this coming when they failed with Whole Foods. I do order from Amazon delivered for things I cannot get in the local stores, but I would never shop at an Amazon retail sotre, and I avoid Walmart at all costs.

[darnellcapriccioso]

This is quite educational. It's crucial for newcomers to keep in mind that the financial markets are highly irrational in the short run. You should constantly be ready for the unexpected. That is how chance operates. Because of the inherent risks in the market, I always favor long-term investments.

[seanoellien]

Amazon built 2 huge new warehouses here in Knoxville last year promised lots of jobs and never opened either warehouse. Demolished an entire mall to build one.

[New-bwkz]

Meanwhile Besos was having a blast watching Bad Bunny at Coachella

[investidorsardinha]

I'm glad I got into trading when I did because it was a turning point for me financially it was my best decision so far courtsey to Mrs Nicole Brusher her set skills are amazing

[theladynextdoor]

I won’t be sad to see Amazon fail or lose money.

[aceofspadez]

I knew they were making a mistake the moment I saw an Amazon store opening near me. It's one of those "getting too greedy" situations. They dominated the online sector, and that's where they should have stood. They should have focused solely on increasing the speed and accuracy and initiation of their delivery services. Companies like this have a hard time just doing what works. Instead, they keep pushing to dominate other markets. Its insane honestly. I stand against the idea that you can never have enough of a good thing.